A recent report has found that more millionaires are making philanthropic financial contributions in excess of £1 million to charities.
Figures, obtained from HM Revenue and Customs by private law firm Wilsons, found that the number of charitable bequests in excess of £1 million has increased by 27% in the last five years.
In the financial year 2011-2012, 2,855 bequests over the £1 million mark were made by wealthy estates. The figures for 2015-16, the most recent figures available, insist that 3,630 people made charitable bequests over £1 million.
Charlotte Watts, Partner at Wilsons Law Firm, says: “The sharp jump in £1 million-plus charitable bequests in the UK is part of a broader boom in philanthropy across the world. Philanthropic giving among US entrepreneurs and business leaders has boomed in the last decade and this has caught on in the UK as people increasingly look to use their wealth to leave a legacy.”
UK philanthropy has been massively funding UK charities in 2018 alone. Richard Cousins, the former chief executive at Compass, left Oxfam £41 million, whilst Steve Morgan, founder of FTSE 250 housebuilder Redrow, donated a staggering £230 million.
Although high profile wealthy estates enjoy the philanthropic spotlight, charitable bequests made by estates valued below the nil-rate band of £325,000 have increased exponentially. 7,490 estates donated £1.5 billion in 2011; this figure has doubled to £3.1 billion in 2016.
Cancer charities are those that are benefiting more than any other because so many people are affected so closely to the disease. Similarly, our island of animal lovers is made clear with the fact that animal charities have enjoyed a 10% increase in the last year.
Whilst some will offer money to charity as it is not counted from in any inheritance tax liability assessments, the added advantage of reducing the inheritance tax your estate would pay is also an important bonus for wealthy estates.
Although offering 10% of a whole estate will reduce inheritance tax from 40% to 36% is important, the philanthropic warmth generated from helping those less fortunate is priceless.
Have you found that more people are making charitable bequests in their Wills? Are you finding more people contesting Wills due to the charitable bequests?
